IB ECONOMICS INTERNAL ASSESSMENT

BOOKLET

Name: ______________________________________

Warning! Ignore the contents of this booklet at your own risk.

Consequences are likely to involve a poor quality of internal assessment portfolio.

Requirements

You will produce a portfolio of three* commentaries of a maximum of 750 words each, based on published extracts from the news media. Each article must be based on a different section of the syllabus (microeconomics, macroeconomics, international economics, development economics). The extracts should be from a newspaper, and must not be from television or radio broadcasts. You should not choose a blog or a transcript as the basis for your commentary. Each commentary must come from a different source.

*You will in fact write four commentaries of which three will be chosen.

Choosing your article (You must have a different source for each commentary)

Method 1: Google

Open www.google.com Click on the 'News' icon. Type in the topic area (e.g. oil price, coffee price, monopoly, patents, steel tariff, . . . ) Glance through several articles from the list to try to find one that you feel would enable you to define

economic terms, apply economic laws, draw relevant economic graphs and evaluate the theories you applied.

Method 2: Search news archives in online newspapers Open the website of an English newspaper. Do try to use newspapers from different countries. Type in a precise topic area in the search engine/archives on the site. Pick from the more recent articles.

The BBC in the UK - http://news.bbc.co.uk/2/hi/business/default.stmThe Telegraph in the UK - http://www.telegraph.co.uk/The Globe and Mail in Canada - http://www.theglobeandmail.com/report-on-business/The Age in Australia - http://www.theage.com.au/The Jakarta Post in Indonesia - http://www.thejakartapost.com/channel/businessThe International Herald Tribune (New York Times international edition) - http://global.nytimes.com/?ihtThe Washington Post in the US - http://www.washingtonpost.comUSA Today in the US - http://www.usatoday.com/The Hindustan Times in India - http://www.hindustantimes.com/The Standard in Kenya - http://www.standardmedia.co.ke/business/?The Manila Times in the Philippines - http://www.manilatimes.net/index.php/business

Method 3

Go to www.thepaperboy.com. Here you will find an overview of all possible newspapers on the article. Choose a country and then search for newspapers in English. When you choose a newspaper, the site re-directs you to the site where you can look for a suitable article. Ideally, you will choose three articles from three different countries. Please try to widen your search to include different countries.

Page | 1

A Guide to Writing Internal Assessment CommentariesLayout

Paragraph 1 – summarise article (briefly), using economic terminology.

Paragraph 2 – Theory before any government intervention or change in determinants

Paragraph 3 – Intervention theory – include quotes from the text. Explain impact of intervention using graph(s).

Paragraph 4 – Evaluate the impact of the policy

Paragraph 5 – evaluate and summarise

Criterion A – Diagrams (3 marks)

Label the axis with the appropriate market (quantity of sugar, price of sugar) as well as a title for the graph (Sugar Market).

Don’t download diagrams. Express a shift (no need to just draw the equilibrium diagram)

Criterion B – Terminology (2 marks)

Define 2 to 4 key terms. These terms should be relevant and used throughout the article. Embed the definitions into the text. e.g. “the production of heat creates external costs that are damaging to third parties” Avoid using “This is defined as…”

Criterion C – Application (2 marks)

Make reference to the article, quoting relevant parts.

Criterion D - Analysis and Explanations (3 marks)

Use economic theory Explain what has happened in the diagram and WHY (cause of the shift and effect on price and

quantity).

Criterion E – Evaluation (4 marks)

Evaluate the impact of the policy.o Explain the extent to which the change has an impact on price/quantity.o Long Run vs. Short Run effectso Prioritisation of points, advantages & disadvantageso Impact on different stakeholderso Elasticity of the ‘other’ curve

Page | 2

Criterion F - Rubric requirements (3 marks)

Within word count (750 words) Sources are clearly referenced Cover sheet is present All three articles must come from different sources Chose articles that’s theme are from different parts of the syllabus (microeconomics, macroeconomics,

international economics, development economics The article is a less than 1 year at the time of writing the commentary.

Each commentary must not exceed 750 words. Moderators will not read beyond 750 words).

The following are not included in the word count:

Acknowledgements Contents page Diagrams Labels of five words or fewer Headings on diagrams of 10 words or fewer Tables of statistical data Equations, formulae and calculations Citations or references (which, if used, must be in the body of the commentary)

Each commentary must have a cover sheet that includes the following required information:

the title of the article the source of the extract (Including date of access to the internet site) the date the article was published the date the commentary was written the word count of the commentary the section(s) of the syllabus to which the commentary relates.

Along with the cover sheet for each commentary, you will be given a summary portfolio cover sheet for the final portfolio. When the final portfolio is assembled, it will include the summary portfolio cover sheet, three commentary cover sheets, three articles and three commentaries.

Discussion and support

It is a good idea to discuss the work you are doing for the portfolio with your teacher, and to seek advice and information. You will not be penalized for seeking guidance!

Advice

As part of the learning process, your teacher can give you advice on a first draft of each portfolio commentary. This advice can be either verbal or written and will suggest how the work could be improved. However, your teacher is not allowed to extensively annotate or edit your draft. You may rewrite your commentary in line with your teacher’s suggestions but your teacher may not advise you on more than one draft.

Page | 3

Internal Assessment Criteria

There are five internal assessment criteria that will be assessed for each commentary.

Criterion A Diagrams 3 marksCriterion B Terminology 2 marksCriterion C Application 2 marksCriterion D Analysis 3 marksCriterion E Evaluation 4 marks

Total 14 marks x 3 commentaries = 42 marks

There is one internal assessment criterion for the whole portfolio.

Criterion F Rubric requirements 3 marks

Each commentary is assessed individually for the first five assessment criteria (criteria A – E) and then criterion F is applied to the whole portfolio. Thus, the total points available are 45 (14 X 3 = 42 + 3= 45)

Criterion A: Diagrams

This criterion assesses the extent to which the student is able to construct and use diagrams.Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 Relevant diagrams are included but not explained, or the explanations are incorrect.2 Relevant, accurate and correctly labelled diagrams are included, with a limited explanation.3 Relevant, accurate and correctly labelled diagrams are included, with a full explanation.

Criterion B: Terminology

This criterion assesses the extent to which the student uses appropriate economic terminology.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 Terminology relevant to the article is included in the commentary.2 Terminology relevant to the article is used appropriately throughout the commentary.

Criterion C: Application

This criterion assesses the extent to which the student recognises, understands and applies economic information in the context of the article.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 Relevant economic concepts and/or theories are applied to the article.2 Relevant economic concepts and/or theories are applied to the article appropriately

throughout the commentary.Criterion D: Analysis

Page | 4

This criterion assesses the extent to which the student can explain and develop appropriate economic theories and/or concepts in the context of the article.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 There is limited economic analysis relating to the article.2 There is appropriate economic analysis relating to the article.3 There is effective economic analysis relating to the article.

Criterion E: Evaluation

This criterion assesses the extent to which the student synthesises his or her analysis in order to make judgments that are supported by reasoned arguments.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 Judgments are made that are unsupported, or supported by incorrect reasoning.2 Judgments are made that are supported by limited reasoning.3 Judgments are made that are supported by appropriate reasoning.4 Judgements are made that are supported by effective and balanced reasoning.

Criterion F: Rubric requirements

This criterion assesses the extent to which the student meets the five rubric requirements for the complete portfolio.

Each commentary does not exceed 750 words Each article is based on a different section of the syllabus. Each article is taken from a different and appropriate source. Each article was published no earlier than one year prior to the writing of the commentary. The summary portfolio cover sheet, three commentary cover sheets and the article for each

commentary are included.

Level Descriptor

0 The work does not reach a standard described by the descriptors below.1 Three rubric requirements are met.2 Four rubric requirements are met.3 All five rubric requirements are met.

Frequently Asked QuestionsPage | 5

What type of stimulus material should I use as extracts for the commentaries?The extracts should be from a newspaper. You should not use a blog for your source. You are advised not to choose articles from The Economist magazine, since the economic analysis will have already been done, leaving you with little to add. Articles from magazines tend to be too long. If you find an article from Reuters or Yahoo News, please look a little longer to find the article in an actual newspaper, as these are not exactly newspapers.

Which web sites are appropriate for extract selection?Newspaper web sites are the only appropriate sources.

How long should an extract be?In theory, extracts may be any length. Regardless of the length, you should highlight or underline the specific areas of the extract that you have selected for discussion. You are advised to choose articles that print on no more than one and a half pages in a 12-point font. On page articles are best. You should copy the article into a separate word document in case the article is removed from the internet and to make it easier to print. Be sure to include the name of the publication and the url address on the word document.

Can the extract be in any language?The article or material used for the extract should be written in English. Other languages may be used but you must provide an exact translation of the relevant sections.

How much feedback can the teacher give?Your teacher will set internal deadlines for the submission of the final version of each commentary. These are compulsory deadlines. At this point commentaries will be collected and will not be available for further editing.

How important is it to meet the word limit requirements?Vitally important! The word limit requirement is exact. Each commentary must have a maximum of 750 words.

What does it mean to say "effective use of diagrams" in criterion B level 4?Any diagram used in a commentary should be explained and should be made relevant to the discussion. Whenever numerical data is provided in an extract, it should be incorporated into the diagram. Ideally, the diagrams will be drawn on the computer. If this is impossible, it is important to draw the diagrams very neatly. The labelling of diagrams must be made specific to the case study discussed in the article. For example, if the article is about the rising price of pecans in the US, then the y-axis label should be “Price of pecans, US$ per kilo) and the x-axis label should be ‘Quantity of pecans per time period (‘000s of kilos)’

Evaluation

What does it mean to evaluate economic theories in the context of real-world examples in criterion E?Page | 6

Evaluation implies a judgment of a theory and an application of the theory to a given situation, with some critical awareness. Evaluation can be done in different ways, but there are several hints. Evaluation may be carried out whenever you do any of the following, coming to a reasoned conclusion.

The following offers some suggestions as to how you might show evidence of evaluation in your work:

Identify which factor is the most important in a list of reasons, costs, benefits, etc. and then justify your choice. For example, “according to the article, the most important cost of inflation is its effect on investment because . . . “

Compare and contrast the short term implications with the long-term implications of an event. For example, “This article considers the short run effects of the increased costs of capital for Canadian firms. However, in the long run, total costs are likely to fall in the long run as a result of the current levels of investment.

Look at an economic ‘event’ or policy from the point of view of different ‘stakeholders and make a judgment about the relative effects. For example, “There are clearly a number of negative consequences of the reduction in EU subsidies on the British milk farms identified in the article. However, in terms of the global allocation of resources, the effects can be considered positive. Non-EU milk farms will have the opportunity to gain valuable market share. Furthermore, the reduced spending on farming by the EU will free up resources to spend in other important areas, such as the development of ‘green technologies.’”

As in the example above, refer to the extent to which resources have been allocated efficiently (after all, economics is all about the allocation of resources!

Consider the advantages and disadvantages of an economic ‘event’ or policy and come to a judgment about the relative merits or problems. For example, “The decision to raise the indirect tax on petrol has presented households and firms with a number of different advantages, as outlined in the article. In the end, it can be concluded that the decision was a positive one because …“

Look at the (implicit) assumptions behind the theories that you are using. These assumptions may not be valid in the context of your article. Remember that the conclusions drawn from applying economic theory often rely on the ceteris paribis assumption. In reality, this assumption cannot be made, since we cannot keep everything else the same in the real world. For example, you might look at an article about a bumper crop leading to a massive increase in the supply of cotton. Economic theory suggests that this will lead to a fall in the price of cotton, ceteris paribus. However, if at the same time there has been a significant fall in demand due to the world recession, then the impact of the increased supply might be very small, if there is any effect at all.

Another assumption that is good to question is the assumption that the main goal of firms is to maximise profits. This may not be the case in your article, and so while you can present the theory and explain the outcomes suggested by the theory, this may not actually be the case in your article.

Page | 7

Consider any elasticity values that might be implicit in the article. For example “The price of corn tortillas has risen in Mexico, and the article refers to the enormous problems that this is creating for Mexicans. While all Mexicans will feel the effect of the price rise to some extent, the impact will be much greater on low income people, whose staple food is the corn tortilla. This makes their demand for tortillas very inelastic. Even though the price has increased, their demand falls by a proportionately smaller amount, and so their total expenditure on corn tortillas increases, leaving them with less income for other goods and services.

Consider why the theories that you have applied do not provide a full explanation of the situation described in the article. For example, “Economic theory suggests that an increase in indirect taxes is regressive, putting greater financial pressure on lower income families. It is therefore unclear why the government is choosing to increase indirect taxes at a time when income inequality is already rising.”

Consider the validity of the theory in the context of the article that you are analysing to come to the conclusion that what economic theory predicts may not be what happens in reality. ”Given the disadvantages associated with the anti-competitive behaviour displayed by the firms in this case, it is very positive that there is a competition commission to regulate the behaviour. However, it is possible that in reality, the commission has little power to prevent the price-fixing since it is so difficult to prove.”

Identify any ideological underpinnings of arguments made in the text (the most obvious of these is related to the debate about whether resources are best allocated through the market mechanism or whether intervention is desireable). For example, an article about the role of fiscal policy in stimulating an economy is likely to imply some debate between Keynesian (interventionist) thinking and neo-classical (free market) thinking.

Possible phrases and sentences to use when evaluating:

1. This theory does not account for the . . . 2. This theory does not provide a full answer to the situation described in the article3. On the other hand…4. The extent to which this is likely to happen depends on . . .5. Apart from economic theory, other factors also have an impact…6. In the short term . . . However, in the long term . . .7. The most important cost is…., because8. Factor X is somewhat less significant than factor Y because . . .9. Other stakeholders such as…10. In reality the theory may not hold true, because…11. This idea is often criticised because…

Do’s and Don’ts

Do . . .

Page | 8

Make a good effort! The portfolio is worth 20% of your final mark. A good portfolio can improve your overall grade.

Use the IB Diploma Programme economics internal assessment criteria to guide your work. Find a suitable current article. Short articles, concerned with real economic matters, are

recommended. Read the article carefully and highlight or underline relevant parts. Define relevant terms but note that there is no need to repeat terms you have already defined in

earlier commentaries. Make sure you fully label all diagrams from the text. (If you are drawing a supply and demand diagram

for the oil market, do not simply put Price [or even P] on the y axis - give the full information - price of oil/$ per barrel). If there are figures in the extract, include them in the commentary.

Provide quotations from the article, as well as any relevant numerical data. Apply relevant theory - link the theory to your particular extract. Highlight any fallacies in arguments and try to reach a balanced conclusion. Try to use a common style of presentation for each of your commentaries - a common font, size of

print, style of heading. Although it is not a requirement, you are strongly recommended to type your work.

Make sure that across your complete portfolio you refer to at least three sections of the syllabus Keep an electronic copy of all of your work – this includes the article, commentary and cover page. Do

not simply save the link for the article as you may not be able to access it at a later date, and you may be required to do so. It should be copied and pasted into a word document (with all the appropriate bibliographic information – name of newspaper and url adress) and stored.

Don’t . . .

Simply paraphrase or summarize the article (this is a common fault). Leave it to the last minute to find an article Download the economics diagrams from an internet source Forget to include quotations from the article Forget to include an accurate word count Write more than 750 words.

Page | 9

Resources

Sample Cover SheetsTwo coversheets are provided here. These may be adapted, as long as you include the required information.

You need to provide a commentary coversheet for each of your portfolio pieces. It is advised that you adopt a common format/style for each coversheet.

The portfolio sheet should be placed at the front of your portfolio and will be filled in at the end.

When you submit your final portfolio, you will also have to submit an official IB form declaring that all the work is your own. Your teacher will give this to you.

IB Economics – Internal assessment summary portfolio cover sheet

School code Name of school

Candidate number Candidate name

Candidate name

Candidate number

Teacher

Title of the article

Source of article

Date the article was published

Date the commentary was written

Word count (750 words maximum)

Section of the syllabusPlease tick the one that is most relevant Section 1: Microeconomics

Section 2: Macroeconomics

Section 3: International economics

Section 4: Development economics

IB Economics – Internal assessment summary portfolio cover sheet

School code Name of school

Candidate number Candidate name

Commentary number

Date article published

Date commentary written

Source (each one to be different and appropriate)

Section of the syllabus the article relates to

Number of words

1.

2.

3.

Checklist

The following checklist can be used to check each commentary before handing it in.

1 2 3Have you kept a second copy of your article and commentary for your file? Have you kept an electronic copy of the article and commentary?Have you submitted the electronic copy?Is there a cover sheet?On the cover sheet, have you noted the:

Title of the extract? Source of the extract? Date of the extract? Word count of the commentary? Date the commentary was written? Section(s) of the syllabus to which the commentary relates?

Have you included the article?

Is the commentary within the word limit (750 words)?

Have you highlighted the relevant parts of the extract?

Have you checked that each article is from a different source, i.e. it is not taken from the same news media as ones you have used in other commentaries?Have you labelled your diagrams accurately? (With relevant information from the article?)

Are your diagrams neatly presented?

Have you clearly explained your diagrams?

Have you included quotations and any numerical data from the article?

Have you used appropriate economic terminology?

Have you attempted to provide evidence of evaluation?

Have you made sure that you are not repeating analysis that you have done in a previous commentary?